Real estate company Prestige Estates Projects Ltd will develop four new residential projects in Bengaluru, Goa, and Hyderabad with an investment of nearly Rs 2,000 crore amid a boom in residential demand. The Company will develop approximately 3,400 housing units in these four projects over the next three and a half years.
“We have launched four new housing projects in the last few months. We are getting very good momentum in these four projects. We have already sold 50 percent in Hyderabad,” said Prestige Group Chairman Irfan Razak.
Referring to these four projects, Prestige Estates CEO of business development Swaroop Anish said the company launched the “Prestige Tranquil” middle-income housing project in Hyderabad earlier this month.
Anish said the project, which spans nearly 8 acres and houses 906 units, will be developed with an investment of around Rs 825 crore, including the cost of the land.
Prestige Estates has started construction work on two residential projects in Bengaluru that are under development jointly with the landowners.
The first, “Prestige Primrose Hills” on Kanakpura Road, is an affordable residential development, spanning 15.5 acres and housing 1,680 units. The project cost has been set at Rs. 475 crore.
The second project in Bengaluru is located in Whitefield called Prestige Waterford. The company is building 689 units in this 17-acre project at a cost of approximately Rs 575 crore.
In Goa, the company is developing “Prestige Ocean Crest” on 2 acres, consisting of 106 units, with an investment of approximately Rs 90 crore.
According to Investor’s Deposit, Prestige Estates recorded 9 percent year-over-year growth in sales bookings to reach Rs 1,123.3 crore during the July-September quarter despite the COVID-19 pandemic.
However, the sales reserve has decreased in the first six months of 2020-2021 to Rs. 1584.4 crores from Rs 2,042.5 crores in the corresponding period of the previous year due to lockdown caused by Coronavirus.
According to PropTiger.com, home sales in eight major cities fell 54 percent year-on-year in the January-September 2020 period to 1,23,725 units.
However, demand is attracted towards those real estate actors who have a proven track record in executing real estate projects on time without compromising quality.
Meanwhile, Prestige Group sells a wide range of its business assets (offices, malls, and hotels) to the global investment firm Blackstone for more than 9 billion rupees.
Tender sheets have already been signed between the two parties and the deal is likely to be completed next month.
Prestige Group will use a large portion of the proceeds from the sale to reduce your debt. Its net debt settled at Rs.8,667.6 crore at the end of the second quarter with an average cost of borrowing of 9.65 percent.
Prestige Estates Projects recently reported a 40 percent decline in consolidated net profit of 93.8 million rupees for the quarter ending September. It posted a net profit of Rs. 157.2 crore in the same period last year.
Total revenue was 1916.7 million rupees in the second quarter of this fiscal year, compared to 1962.7 million rupees in the same period last year. The Prestige Group has so far completed 247 projects covering 134 million square feet. In the housing sector, the company has completed 118 projects and is currently developing 30 more.
36 million square feet of office space completed and 15 million square feet under construction. In the shopping center section, 7 million square feet have been completed and another 3 million square feet area is under construction. In the hospitality industry, Prestige Group owns 1,262 keys and is developing 1,229 keys.